Michael Saylor, the founder of MicroStrategy and one of the biggest proponents of Bitcoin adoption in the mainstream, said there could be a major demand shock for Bitcoin, come the spot ETF approval in January 2024.
Also Read: US SEC Met Spot Bitcoin ETF Seekers 24 Times So Far; What’s Ahead?
Demand Shock & Supply Shock
Saylor warned against underestimating the power of the spot Bitcoin ETF, in the context of the likelihood of approval from the U.S. Securities and Exchange Commission (SEC). Speaking to Bloomberg on Tuesday, he said it would not be unreasonable to say that the Bitcoin ETF approval could be the biggest development on Wall Street in three decades. Saylor predicted that Bitcoin would go on a bull run in 2024, stating that the spot ETF approval could have a similar impact on markets as the launch of the S&P 500 index funds in the stock market.
With the approval of spot ETF, the US SEC could trigger a demand shock for BTC, he predicted, adding that the Bitcoin Halving event scheduled for the second quarter of 2024 could trigger a supply shock, making the cryptocurrency more valuable and more scarce. The Bitcoin (BTC) price is currently around 13% higher compared to a month ago, while it remains to be seen how volatile it could become ahead of the SEC’s January 10, 2024 deadline. Some analysts foresee a 98% chance of approval before the deadline, with the likes of Blackrock conducting frequent meetings with the SEC officials.
MicroStrategy BTC Accumulation
Going by the bullish sentiment, MicroStrategy, which is currently the largest institutional holder of Bitcoin, may likely accumulate more of the cryptocurrency. Earlier, CoinGape reported the company’s recent BTC purchase worth $5.3 million on November 2, 2023, when the BTC price was just above $34,000. The company began accumulating BTC in August 2020 and currently has a total holding of 158,400 Bitcoin.
Meanwhile, officials of the US SEC have so far met with spot ETF filers as many as 24 times, in what could be a sign of likelihood of approval before the January 10 deadline.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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